DraftKings targets $150m investment - report

12 June 2018

DraftKings is reportedly pushing for a new cash injection of more than $150m (€127m) as it launches its bid to become a major player in US sports betting.

The daily fantasy sports giant officially applied for a licence to offer sports betting in New Jersey on Monday. It has already partnered with Resorts Casino Hotel, which satisfies an expected regulatory requirement for the company to offer an online sports betting product in the state.

Website Axios reports that the company is now seeking more than $150m from investors to help it develop its sports wagering business.

DraftKings wants to establish its betting offering and bolster its resources after its fantasy sports rival FanDuel was bought out by global giant Paddy Power Betfair last month.

While DraftKings generated $192m in 2017 revenue, according to figures quoted by Axios, FanDuel has been bought out by a company which brought in more than $2bn during the calendar year.

According to Axios, DraftKings expects daily fantasy sports to continue to generate most company revenue for years to come, with state-by-state approvals for sports wagering likely to be slow.

Meawhile, DraftKings has confirmed the appointment of Karl Gambin as director of New Jersey gaming operations based out of its new state office in Hoboken.

Gambin will lead DraftKings' compliance, customer and regulatory activities in New Jersey.

Related article: DraftKings names Hurley as head of sportsbook